Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
US-based multifamily real estate investment trust Veris Residential has agreed to be taken private in an all-cash transaction valued at USD 3.4 billion, including debt, earlier this week. The acquisition will be led by a consortium comprising Affinius Capital and Vista Hill Partners. Under the terms of the deal, shareholders will receive USD 19 per share, representing a double-digit premium to the company's last closing price. The transaction follows a multi-year strategic shift by Veris to exit office assets and streamline its operations. Financing for the deal will include a combination of equity and debt, including a large bridge loan. The transaction is expected to close in the second quarter of 2026, subject to shareholder approval and customary closing conditions.
Veris Residential has agreed to be taken private in an all-cash deal valued at USD 3.4 billion, including debt, earlier this week. The transaction will be led by a consortium comprising Affinius Capital and Vista Hill Partners, the company said in a statement. Advertisement
Under the terms of the agreement, Veris shareholders will receive USD 19 per share, representing a premium of 13.3% to the company's last closing price. Following the announcement, the company's shares rose to USD 18.88 in pre-market trading. The transaction marks a significant milestone in Veris ongoing strategic repositioning, which has focused on exiting office assets and simplifying the business over the past five years.
Mahbod Nia, Chief Executive Officer of Veris Residential, said the agreement followed sustained efforts to streamline the company's portfolio and operations. He noted that the business had progressed through asset disposals, debt reduction and operational improvements, although its share price continued to trade below the assessed value of its underlying property assets.
The transaction will be financed through a mix of equity and debt, including a USD 2.08 billion bridge loan. Veris also said it would suspend its dividend after making the payment for the first quarter ending March 31. The company added that the move aligned with its broader capital and balance sheet strategy in the context of the proposed privatisation.
The deal comes amid a broader trend of private equity firms and real estate investment groups targeting publicly listed real estate investment trusts for take-private transactions. These buyers are seeking to capitalise on discounted share prices and the relative stability of underlying real estate assets. Earlier this month, Kennedy-Wilson agreed to be taken private by its chief executive officer, William McMorrow, alongside Fairfax Financial, in a transaction valued at approximately USD 1.5 billion.
Earlier this month, Erez Asset Management, which holds nearly 5% of Veris Residential, had asked the company to explore a potential sale and review its strategic options. In late 2022, Veris, then known as Mack-Cali Realty, had rejected unsolicited acquisition proposals from Kushner Cos.
The transaction is expected to close in the second quarter of 2026, subject to approval by Veris shareholders and the fulfilment of customary closing conditions. J.P. Morgan and Morgan Stanley are acting as financial advisers to Veris, while Weil Gotshal & Manges and Seyfarth Shaw are serving as legal advisers.
Source - Reuters
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
